How is commercial real estate transforming with the second wave of the pandemic?

Manhar Khurana, partner, Soulcraft Solutions, has a few ideas

File photo
File photo

The growth of India's commercial real estate sector has provided the much-needed infrastructure for the nation's ballooning needs and owes its steady growth to government initiatives such as Make in India. The developers and buyers have now hailed the move due to the resulting transparency and competence of the sector.

Despite their initial troubles, the sector now attracts increasing amounts of foreign direct investments (FDI) in the commercial estate, with continual economic growth driving the demand for commercial property. Programs such as Smart City, AMRUT, the increase in government initiatives, and urban development policies are expected to contribute to the demand for real estate infrastructure

Challenges faced

Until 2019, the commercial real estate segment was experiencing steady growth. The first wave of the pandemic and the ensuing lockdowns affected the growth in its tracks and disrupted businesses across the nation. One can go as far as to say that the sector was in dire straits right through the first and second waves. The lockdown left several businesses scrambling to find ways to find alternatives while enacting company-wide work-from-home protocols

How is the sector transforming and evolving in pandemic?

The pandemic has undoubtedly had an impact on every sector across the world. The commercial real estate sector, in particular, had to rapidly adapt to the new normal and find ways to stay afloat in the sea of uncertainty that lay ahead. The phase witnessed a paradigm shift in consumer behavior and a total recalibration of how people perceived the industry

The sector adapted to what was, then, the need of the hour; E-meetings, chatbots, and accelerated digital up-gradation helped the projects to be rolled out promptly, with stakeholders readily available to lend support through e-meetings. This ensured the smooth functioning of the projects and is shaping new reforms for the commercial real estate sector.

Different instances and activities that are contributing towards the growth of the sector

Through the Government initiatives like “Atma Nirbhar” and Vocal for Local, the sector was introduced to a climate of innovation and the opportunity of more jobs and security within the country. Moreover, India is emerging as an appealing location for companies to set up shop thanks to relatively affordable land rates, reasonably affordable labour, and several infrastructural developments.

The outlook:

Despite the several challenges faced, the future of India's commercial real estate sector looks bright. The segment is poised for a revival thanks to the expected resumption of economic activity as the lockdowns begin to ease and a slew of new government initiatives create a conducive environment for growth.

The sector has witnessed changes over the years owing to the nature of the business while adaptation and evolution have been its core strengths. With consumer reliability, the sector hopes for a promising future and will continue to contribute towards the betterment of the economy

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